For foreign direct investment to occur, the purchase has to be ...

[charchew]

For foreign direct investment to occur, the purchase has to be more than
 
  A) 8 percent but less than 10 percent of shares in a business located abroad.
  B) 5 percent but less than 10 percent of shares in a business located abroad.
  C) 10 percent of shares in a business located abroad.
  D) 2 percent but less than 5 percent of shares in a business located abroad.

Question 2

Imagine two countries, Zorba and Anduluvia. Zorba is producing everything at a lower resource cost than Anduluvia. If the two countries trade what is the reason?
 
  What will be an ideal response?

[ecabral0]

Answer to Question 1

C

Answer to Question 2

Just because Zorba has an absolute advantage in the production of all goods does not mean that it's not beneficial for the two countries to trade. Suppose there are only two goods. Zorba may have a comparative advantage in only one of the two goods, while Anduluvia may have a comparative advantage in the other. So Zorba could be made better off by specializing in the good in which it has the comparative advantage and trading with Anduluvia for the other good.